Stock X Has a Standard Deviation of 22 Percent Per

question 44

Multiple Choice

Stock X has a standard deviation of 22 percent per year and stock Y has a standard deviation of 8 percent per year.The correlation between stock A and stock B is .21.You have a portfolio of these two stocks wherein stock Y has a portfolio weight of 40 percent.What is your portfolio variance?

• A).02022
• B).02156
• C).02239
• D).02247
• E).02350

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Definitions:

Evaluative Link

Evaluative link refers to the cognitive and emotional connection made between various concepts, objects, or entities, determining how favorably or unfavorably they are viewed.

Situational Cues

Environmental signals that influence an individual's behavior in a particular context.

Activated Automatically

The process where certain responses or functions are initiated without conscious decision making.

Classical Conditioning

A conditioning method where a response initially triggered by one stimulus eventually gets triggered by another stimulus, due to their repeated association.